This invention relates to the fields of computer systems and electronic commerce. More particularly, a system and methods are provided for depicting or representing on-line transactions (e.g., visually, aurally) in order to facilitate analysis of the transactions for fraud and other purposes.
As the on-line community expands, the number and value of electronic financial transactions conducted on-line will likely keep pace. More specifically, on-line purchases of goods and services and transfers of funds are becoming more and more popular. Part of the reason for the increased willingness to conduct such transactions on-line is that there is an increasing perception that such transactions are conducted safely, and that the risk of loss of funds or financial data is steadily decreasing.
In reality, however, on-line fraud is, if not pervasive, then at least a significant concern to the entities most likely to bear the burden of that fraud. In particular, merchants that accept credit card transactions on-line run the risk of a chargeback with each such transaction. In a chargeback, the merchant that accepted a credit card as payment for a good or service is not paid or reimbursed for the transaction. When the credit card is stolen, for example, the rightful holder of the credit card is absolved of responsibility for charges made by the thief, and the merchant loses the merchandise that was “purchased.” In order to keep their account holders placated, credit card issuers are usually quite willing to assess a chargeback to a merchant when an account holder alleges that his or her credit card was stolen, cloned or otherwise used without permission.
Some on-line merchants or entities may be at more risk than others, or may be more attractive targets to credit card thieves and unscrupulous credit card holders. In particular, on-line businesses now exist that allow one person or entity to transfer money to another person or entity, on-line, and charge the amount of the transfer to his/her/its credit card. A chargeback may be made as late as six months after the charge transaction occurs, and the recipient naturally expects to receive the funds very soon after the transaction. Therefore, with very little time to verify that a credit card that appears valid (e.g., the credit card number is authentic and/or is issued to the person or entity allegedly conducting the transaction) actually is valid, the on-line business is at substantial risk of losing the funds that it credits to the recipient.
Thus, what is needed is a method of detecting fraudulent on-line transactions that attempt to transfer money from or charge funds to an invalid or stolen credit card or other financial account or instrument.